The Gap Between Homeowner’s and Appraiser’s Opinions Widen

Homeowner’s & Appraiser’s Opinions Widen

In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. One major challenge in such a market is the bank appraisal.

If prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the price when performing the appraisal for the bank.

Every month, Quicken Loans measures the disparity between what a homeowner believes their house is worth as compared to an appraiser’s evaluation in their Home Price Perception Index (HPPI). Here is a chart showing that difference for each of the last 12 months.

The gap between the homeowner vs. appraiser’s opinion had been heading in the right direction (closer to even), until this past month, when the gap widened again to -1.99%.

Bottom Line

Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be even more difficult than the first. If you are planning on entering the housing market this year, let’s meet up so I can guide you through this, and any other, obstacles that may arise.

Share this:

Related

About Me

Hello there! My name is Travis Rougier (roo-zhay). I'm a father of three girls, a Lake Tahoe Realtor, modern day Renaissance man, tech guru, wannabe foodie, entrepreneur, and a heliophile. All around, a pretty great guy. Find out more...

Follow Me On Feedly

Subscribe to My Blog

Enter your email address to subscribe to this blog and receive notifications of new posts by email. I promise, you won't regret it.

Email Address

Lake Tahoe Homes

Real estate sales and purchasing for investors, vacationers, vacation renters, and first-time home buyers. Lake Tahoe real estate made as easy, simple and rewarding as it can be. Travis Rougier can help you with your Lake Tahoe homes for sale, and any Lake Tahoe real estate needs you may have.